FDIC Law, Regulations, Related Acts

1000 - Federal Deposit Insurance Act

SEC. 20. PARTICIPATION BY STATE NONMEMBER INSURED BANKS IN
LOTTERIES AND RELATED ACTIVITIES.--

(a) PROHIBITED ACTIVITIES.--A State nonmember insured bank
may not--

(1) deal in lottery tickets;

(2) deal in bets used as a means or substitute for participation
in a lottery;

(3) announce, advertise, or publicize the existence of any
lottery; or

(4) announce, advertise, or publicize the existence or identity
of any participant or winner, as such, in a lottery.

[Codified to 12 U.S.C. 1829a(a)]

[Source: Section 2[20(a)] of the Act of September 21, 1950 (Pub.
L. No. 797), as added by section 3 of the Act of December 15, 1967
(Pub. L. No. 90--203; 81 Stat. 610), effective April 1, 1968; as
amended by section 602(a)(51) of title VI of the Act of September 23,
1994 (Pub. L. No. 103--325; 108 Stat. 2290), effective September
23,1994]

(b) USE OF BANKING PREMISES PROHIBITED.--A State nonmember
insured bank may not permit--

(1) the use of any part of any of its banking offices by any
person for any purpose forbidden to the bank under subsection (a), or

(2) direct access by the public from any of its banking offices
to any premises used by any person for any purpose forbidden to the
bank under subsection (a).

(1) The term "deal in" includes making, taking, buying,
selling, redeeming, or collecting.

(2) The term "lottery" includes any arrangement, other than a savings promotion raffle, whereby
three or more persons (the "participants") advance money or
credit to another in exchange for the possibility or expectation that
one or more but not all of the participants (the "winners") will
receive by reason of their advances more than the amounts they have
advanced, the identity of the winners being determined by any means
which includes--

(A) a random selection;

(B) a game, race, or contest; or

(C) any record or tabulation of the result of one or more events
in which any participant has no interest except for its bearing upon
the possibility that he may become a winner.

(3) The term "lottery ticket" includes any right,
privilege, or possibility (and any ticket, receipt, record, or other
evidence of any such right, privilege, or possibility), of becoming a
winner in a lottery.

(4) The term "savings promotion raffle" means a contest in which the sole consideration required for a chance of winning designated prizes is obtained by the deposit of a specified amount of money in a savings account or other savings program, where each ticket or entry has an equal chance of being drawn, such contest being subject to regulations that may from time to time be promulgated by the appropriate prudential regulator (as defined in section 5481 of this title).

[Codified to 12 U.S.C. 1829a(c)]

[Source: Section 2[20(c) of the Act of September 21, 1950, as
added by section 3 of the Act of Dec. 15, 1967, (Pub. L. No. 90--203;
81 Stat. 610), effective April 1, 1968; as amended by section 3(c) of the Act of December 18, 2014 (Pub.L. 113-251; 128 Stat. 2889)]

(d) LAWFUL BANKING SERVICES CONNECTED WITH OPERATION OF
LOTTERY.--Nothing contained in this section prohibits a State
nonmember insured bank from accepting deposits or cashing or otherwise
handling checks or other negotiable instruments, or performing other
lawful banking services for a State operating a lottery, or for an
officer or employee of that State who is charged with the
administration of the lottery.

(e) REGULATIONS; ENFORCEMENT.--The Board of Directors
shall prescribe such regulations as may be necessary to the strict
enforcement of this section and the prevention of evasions thereof.